Bitcoin Sidechain RSK Integrates DAI Stablecoin
Bitcoin sidechain Rootstock (RSK) has integrated MakerDAO's DAI through the RSK-Ethereum Token Bridge, as per an announcement on October 6th. The dollar-pegged stablecoin is now accessible to all Bitcoin-backed applications on RSK.
RSK is a federated sidechain aimed at enabling Ethereum-like smart contract capabilities for Bitcoin. RBTC, the sidechain's native token, is pegged 1:1 to main chain bitcoin.
rDAI Brings Cheaper Fees
RSK notes cheaper fees as one fo the main benefits of rDAI on RSK. With Ethereum’s average transaction fee hitting a peak of $14.5 on September 2nd, the stablecoin's useability was significantly handicapped.
"At a time where Ehtereum [sic] gas prices have reached high levels, this integration provides the possibility to access DAI at a low cost through the RSK blockchain," RSK shared in a blog post. "Interoperability between blockchains is gaining more traction and at an all time high fees, moving tokens to RSK at much lower fees seems like a natural choice."
rDAI can currently be used on applications built on RSK, one of them being rskswap, a fork of Uniswap. The RSK-Ethereum Token Bridge also allows DAI users access to the Rootstock Infrastructure Framework (RIF) ecosystem, a platform built by RSK parent company IOVLabs on top of the RSK sidechain.
“[RSK] has a TPS limit of about 400 once parallel processing is enabled, which is not very high. With RIF this number scales much higher. Also services like RIF identity, RIF storage, RIF name service, all use RIF as the main token,” an RSKsmart spokesperson told the BTC Times.
With a security-first approach, the Bitcoin-Ethereum bridge was audited by Trail of Bits and reviewed by the Maker Foundation Integrations Team in hopes of expanding "DeFi" adoption to Bitcoin.
"The DAI integration is another key step towards Bitcoin DeFi's adoption. We are confident the growth of the Bitcoin ecosystem and its DeFi opportunities has only just begun, with much more to come," said Gutierrez-Zaldivar.